Legal basis and referenced agreements
- The Order implements the Memorandum of Agreement dated November 19, 2010 between the Bureau of Customs (BOC) and the Federation of Philippine Industries (FPI).
- The Order operationalizes mandatory product standards conformance under the Philippine National Standards (PNS) system administered by the Bureau of Product Standards (BPS).
- The Order bases its “alert” concept on CMO 92-91, as amended.
- The Order requires technical assistance linked to consumer protection under the Consumer Act of the Philippines.
- The Order references government regulatory requirements prior to release in the domestic market, including permits from DENR and BFAD.
Policy objectives
- The Order directs enhanced efforts to stop technical smuggling and fosters a fair and level playing field for industry players.
- The Order mandates efficient implementation of rules on BPS Philippine National Standards (PNS) conformance for covered imported products under the Mandatory Products Standards Certification Scheme.
- The Order strengthens cooperation between BOC and FPI to combat smuggling, monitor injurious import transactions, and prevent fraudulent valuation.
- The Order aims to prevent the proliferation of unsafe, non-PNS-compliant, low quality, and substandard imported products.
- The Order expressly protects government revenues and the general consuming public.
Coverage and scope of application
- The Order applies to all imported articles entered in the bureau for importation of articles specified under the covered annexes and classifications.
- Coverage includes all imported products under the Mandatory Product Standards Certification Scheme listed in Annex A.
- Coverage includes all imported sensitive agricultural products such as sugar and onions, whose corresponding tariff lines are listed in Annex B.
- Coverage includes all monitored/sensitive products listed in Annex C that are considered subject to continuing alert.
- The Order may be amended as the need arises regarding the covered articles enumerated in the annexes.
Defined terms and key participants
- An Industry Technical Expert (ITE) is an accredited person by FPI issued an Authorization from the Deputy Commissioner for Assessment and Operations Coordinating Group and a Mission Order by the BOC.
- An ITE observes physical examination of alerted shipments, reviews import documents, and submits recommendations on proper description and classification, price, quantity, and conformance with Philippine National Standards (PNS).
- An ITE assists Customs on technical matters to protect the general consuming public and may include compliance to government regulations prior to release (including DENR permits and BFAD permits).
- An Alert is an alert issued pursuant to CMO 92-91, as amended.
- “Industry” refers to industry association members and/or qualified corporate members engaged in the actual business of manufacturing.
- The Industry Screening Committee is chaired by FPI and tasked to update:
- the List of Industry Technical Experts (ITEs), and
- the List of Monitored/Sensitive Articles, including the List of Products under the Mandatory Product Standards Certification Scheme under PNS.
- The ITE Secretariat functions as liaison on joint FPI-BOC monitoring activities and is chaired by FPI.
- An ITE Mission Order is issued by the BOC identifying the list of commodities and corresponding tariff headings to be monitored by an ITE.
- The Bureau of Product Standards (BPS) is the Philippine national standards body under the Department of Trade and Industry (DTI) that develops and implements PNS, and certifies manufacturers and importers under mandatory certification against PNS requirements.
- The PNS Mark and the ICC Mark are issued and securely affixed by the BPS to products covered under the Mandatory Product Standards Certification Scheme to certify compliance with PNS rules and regulations.
Administrative provisions and operational workflow
- An ITE acts as an observer during physical examination of alerted shipments, is provided copies of the import entry and other import documents, and may submit recommendations to the Officer-on-Case assigned in the Alert Order (except for continuing-alert articles).
- The BOC shall forward covered shipments enumerated under Annex A, Annex B, and Annex C for FPI Secretariat clearance/physical examination on RED Channel, except importations covered under Super Green Lane Plus (SGL+).
- An ITE must always be available to observe the physical examination of an alerted shipment, and notification to the ITE must be made in the fastest way possible.
- Physical examination proceeds even without the ITE if notification is not received, subject to the four (4)-hour rule.
- The authorized ITEs must provide full assistance to BOC in establishing violations to expedite prosecution of apprehended cases arising from issuance of an alert.
- The District Collector of Customs is designated as the Coordinator to implement the Order and to assist industry members in pursuing the Order’s objectives.
- Where practicable, the ITE Secretariat shall be provided office space within the Collection District, ITE activities shall be confined in the Secretariat’s office, and necessary improvements and equipment shall be provided by Industry.
Operational provisions: requests, RED Channel, timing
- All documents related to import entries forwarded to the FPI Secretariat for clearance/physical examination on RED Channel, including consolidated entries with tariff headings covered by an ITE Mission Order, shall be coursed through the ITE Secretariat.
- The ITE Secretariat may request for an alert or for inclusion under continuing alert with the BOC.
- Only the Head of the ITE Secretariat or a duly authorized representative may request for an alert.
- Industry personnel tasked to receive the request must ensure the alert request is received by the concerned District Collector of Customs.
- Upon receipt of the request, the District Collector of Customs considers the request and decides whether or not to issue the alert.
- If the District Collector issues an alert, he shall immediately notify the ITE Secretariat of the exact date, time and place of examination so the ITE can be sent, using a notification form devised for all parties concerned.
- To avoid delay in release of an alerted shipment, the Order imposes strict observance of the following timing and process rules:
- Immediately after examination, the ITE submits a written report in the prescribed form to assigned COO III within one hour after examination, and furnishes a copy to the District Collector of Customs.
- If the ITE’s report is adverse, the District Collector informs the ITE Secretariat of the BOC action taken on the adverse report.
- The ITE opinion is recommendatory, disputes are resolved under existing BOC rules and regulations, and the ITE recommendation shall not be used to cause delay in processing any shipment.
- The BOC may request a competent ITE to witness and examine in pursuit of the Order’s objectives even if the alert was not initiated by Industry, and Industry must extend full assistance.
- BOC ensures covered shipments consistent with Annex A (including Annex B and Annex C entries) are shown to the concerned ITE; additional goods require written request to BOC with justification for inclusion.
Resolution of issues and tentative release
- The District Collector of Customs resolves any issues arising from the Order within forty (40) hours.
- Importations with pending or unresolved issues may be allowed tentative release, subject to existing BOC rules and regulations.
Repeals and effect
- All other rules, orders, and regulations inconsistent with the Order are revoked, amended, or modified accordingly.